After careful consideration of regulatory changes and governmental reimbursement factors related to the long-term healthcare and senior living industry, as well as the market position of Carolina Adventist Retirement Systems, Inc. (CARS), the Carolina Conference Executive Committee found it appropriate and in the best interests of the Conference to divest itself of CARS in a market transaction.
Following the careful review of multiple proposals in response to the Conference Request for Proposals (RFPs), a decision was made by secret ballot to proceed with the transaction and accept the highest bid offer of $19 million.
After closing costs, and fees associated with a multi-year close-down of the organization, the Conference placed approximately $17,000,000 in an investment/ endowment fund. An additional $1,250,000 will likely be received over the next four years (following the regulatory timeframes of escrowed amounts) for a total of approximately $18,250,000.
The Conference Executive Committee voted unanimously to place these funds in an endowment in which the investment earnings generated from these funds will be used, in equal shares, exclusively for student scholarships and capital needs of Mount Pisgah Academy (MPA). It is anticipated that over the next 2-3 years the investment income will be approximately $200,000 - $400,000 per year.
It is the clear belief of the Conference Executive Committee and the Conference Administration that God has led throughout this complex transaction and that His blessings will continue as the funds earned on this amount, administered in accordance with the endowment agreements and state law, will continue to benefit MPA and its students for years to come.